China and the United States agreed to a ceasefire in their bitter trade war on Saturday after high-stakes talks in Argentina between US President Donald Trump and Chinese President Xi Jinping, including no escalated tariffs on January 1. However, the longer-term outlook for trade relations remains murky.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HOSE) edged up 2.70 per cent to close at 951.59 points on Monday.

The index touched an all-time record high of 1,204.33 points on April 9, but then declined 23 per cent to close last week at 926.54 points.

The minor HNX Index on the Hà Nội Stock Exchange lost 24 per cent in the same period.

It rose 2.69 per cent to end at 107.64 points on Monday.

Trading liquidity rose sharply with nearly 254 million shares traded on the two local exchanges, worth VNĐ5.6 trillion (US$238 million).

Large-cap stocks continued driving the market, lifting the blue-chip VN30 Index by 3.01 per cent to 921.72 points.

Across the stock market, banks, property developers, securities firms and construction companies were among the best performing groups.

Blue chip stocks were in strong demand and pulled up the VN-Index. Bank for Investment and Development (BID) and steel maker Hoa Sen Group (HSG) hit the daily limit rise of 7 per cent.